VENKATA SAINATH ENTERPRISES Vs. DHANUKA PESTICIDES LTD.

JUDGEMENT

(1.) THESE two petitions raise common question regarding liability of A-l company for dishonour of cheques issued by proprietor of A-2 proprietary concern.

(2.) IT is contention of the complainants/1st respondent in both the petitions that A-l is a dealer and that as per instructions of A-l, goods have been supplied by the complainants to A-2. According to the 1st respondent's Counsel, sale/purchase invoices show that they were prepared in the name of A-l, but goods thereunder were delivered to A-2. It was proprietor of A-2 who issued the two dishonoured cheques in favour of the two complainants/1st respondents. A-l in C.C. Nos. 1219 of2006 (old C.C. No. 1009 of 2003) and C.C. No. 566 of 2006 (old C.C. No. 1006 of 2003) on the file of I Additional Chief Metropolitan Magistrate, Hyderabad is the petitioner in these two petitions. A-2 whose proprietor issued the cheques is not questioning the complaints.

(3.) IN the case on hand, A-l did not issue any cheque much less on its own account in any Bank, and it was A-2 who issued the cheque on A-2's account in the Bank. Therefore, there is absolutely no criminal liability for A-1 for offence punishable under Section 138 of the Act. This will not take away right of the complainants/ 1st respondents to make a claim against A-l in Civil Court in a properly constituted civil suit.